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This Page Designed & Copyrighted By: Webmasters Torri Barrett
James Barrett
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TAX EVASION: Board of Directors Stoop to a New Low By J.F. McGuire
For years and years the SCSD has been providing Fax/Photocopy services to the Public for a fee. Brought to light recently by Director James G. Barrett is the fact that these fees are subject to California State Sales Tax laws. This is attested to in an email from the State Board of Equalization (BOE) which is responsible for collecting State Sales Tax. On June 13th, 2008 Director Barrett, during budget talks, mentioned that the tax code required the district to collect and pay sales tax on Fax/Photocopy services. Then on July 12th, 2008 he notified the SCSD Board of Directors of the tax requirements in an email dated July 12, 2008. Once again Director Barrett brought up the issue on October 21st, 2008 when the SCSD Board was setting the annual rates for the Golf Park, Pool, and Fax/Photocopy services. Director Barrett made a motion to include the sales tax on Fax/Photocopy services as required by law. At this motion the other Directors sat quietly as though nothing important was being mentioned. The motion died for the lack of a second. On October 31st, 2008 the District sent a letter to Mr. Barrett in response to a Public Request for Information that he had submitted on October 27th, 2008. The request was for any documents that showed that the District was paying State Sales Tax for the Fax/Photocopy services that they were providing to the public. The reply stated that the District was not paying the sales tax because they were not required to. This is in direct conflict with the email from the BOE that declared that “Photocopies and incoming faxes are taxable since a tangible personal property is provided. You are correct that local governments are not exempt from taxes...only the federal government is. Sales tax should be collected and remitted to the Board (BOE)”. State Sales Tax Evasion is described by the BOE as Fraud and can be prosecuted as a felony. Anyone can report sales tax evasion to the BOE at http://www.boe.ca.gov/invest/salestax.htm |
